- CharitiesNFT: A kind of digital-twin NFT, promotes NFTizing physical artwork created by grass-root artists, using Hologram and Holo-DKEY for Crypto-Validation.
- CharitiesDAO: A kind of DANO (Decentralized Autonomous Non-profit Organization) with an ecosystem of charities founders, individual contributors and receivers, project accelerators and incubators. This is building more transparent and efficient decentralized donation chains.
- In a series of articles, I will introduce WHITE PAPER of CharitiesNFT and CharitiesDAO and discuss how they work for Canadian Indigenous Traditional Culture and Grass-root Artists as one of the application scenarios of CharitiesNFT.
CharitiesDAO vs Traditional Charity: More Transparent and Efficient Decentralized Donation Chain
Charities operate by setting-up funds that invest in for-profit businesses, allocate part of the profits to the charitable causes they serve the rest to grow in perpetuity. These funds are called endowments. What is the problem? The barriers to entry are too great for most charities to gain access to an endowment. This is where CharitiesDAO and Angel Protocol come in.
- All Blocks and Nodes in a typical donation chain of CharitiesDAO includes:
- Government authority: Granting, Supervising, Policymaking.
- NGO Fundraising Organization: Fundraising, Planning, Supervising, Directing.
- Beneficiaries and Receivers: Monitoring and Reporting.
- Distribution and Fund flowing Mechanism
- Supervising and Measuring Mechanism
In CharitiesDAO, anyone (Government authority, NGO fundraising organization, social workers and volunteers, benefactors and contributors, and beneficiaries and receivers) can monitor, inspect and scrutinize to minimize unnecessary waste and corruption in a whole donation chain. Each charity is governed by their respective charityDAO, responsible for charity-level governance decisions.
Angel Protocol
Angel protocol’s vision is to empower charities — putting sustainable and influence-free money in the hand of charities on the frontlines of creating a justice-centred world. Overall, governance plays a central role in the vitality of Angel protocol. To do this, Angel will create transparent and secure endowment accounts. It has ambitious goals for the future of giving the collective potential of engaged donors to rethink old structures of monetary power and influence in traditional charities.
In many nonprofits and charities lack the long term operating reserves creates existential challenges for charities including poor predictability of volatile cash flows and allocation of resources and time. Angel protocol’s goal is to disrupt this outdated model (Traditional Charities). With Angel, it will allow charities to receive donations via perpetual endowment accounts. These accounts allow donations to compound over time, generating interest to “eternally” contribute.
DANO Body
The DANO is the decentralized body that governs Angel Protocol. It has been designed to empower charities with financial freedom. With Angel, Charities can create endowments that are subject to governance by charity-level DAOs as well as the Angel DANO (Decentralized Autonomous Non-profit Organization). DANO ensures that all funds are passed on to charities rather than passing the funds into the pockets of executives.
To operate with the utmost transparency and accountability, DANO governance in charitable organizations happen on chain. This eliminates opportunities for fraudulent activities.
In DANO, a Board of directors is elected on-chain by token holders for a set term. The role of the board of directors is to provide strategic guidance and settle arbitration. Furthermore, the directors establish an finance committee, which oversees the financial aspects of operations and publishes annual reports. In addition, they creating a charity screening committee to review applications, perform due diligence and validate the charities.
Tokens are designed for donors to take part in the governance of Angel Protocol. To take part in the governance, token holders stake the DANO’s token ($HALO) to the charity organizations. The value and goal of the token holders are to incentivize the actions of curating, donating and governing whilst allowing the token holders to participate in the upside as each endowment grows. Since DANO is based on a decentralized body, anyone can monitor as long as donors deposit $HALO tokens into charity in exchange for charity shares of governance. Basically, charity shares can be exchange for $HALO tokens, and CharityDAO will be governed by $HALO token holders who stake into it. When getting tokens from the DANO, the token holders will receive shares back, which represents their share of the DANO and grants them cash flow rights.
Furthermore, DANO creates a strong sense of community between a charity and donors. The token holders of Angel Protocol $HALO token have exclusive rights to participate in decisions for charities. They can veto any of the decisions taken by the DANO’s Board of Directors. $HALO token holders have exclusive rights to participate in governance decisions for those charities with which they have staked. Such governance decisions might include the voting on charity created proposals and strategic direction. The token holders help charity organizations raise more money via curation and signalling. By enabling donors to take part in the governance of Angel Protocol, a special procedure is triggered to determine if the proposal is valid and to offer fast arbitration and injunction action if necessary. Above all, there will be an increased visibility in charity organizations.
CharitiesDAO: The New Age Charities
CharitiesDAO with its unique CharitiesNFT is the best solution, which is based on concept of Share-to-give that charity resources can be share best and contributed sustainably to maximize the value of charity, and decentralized CharitiesDAO that anyone can monitor, inspect and scrutinize to minimize all unnecessary waste and corruption in the whole donation-chain. It will be an overthrowing revolution for traditional charities that makes the ability to offer “Share-to-Give” that charity resources can we share best and contribute sustainably to maximize value of charity. Each charity is governed by their respective charityDAO, responsible for charity-level governance decisions.
Bibliography
“Angel Protocol Litepaper”. Angel Protocol. https://www.angelprotocol.io/ap-litepaper.pdf. Accessed 17 April 2022.
This is an opinion article; the views expressed by me. Follow Me on Twitter: @hkpltw And @Terry_Terence97
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